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Gnáthamharc

Local Authority Funding.

Dáil Éireann Debate, Wednesday - 8 November 2006

Wednesday, 8 November 2006

Ceisteanna (18)

Gerard Murphy

Ceist:

15 Mr. G. Murphy asked the Minister for the Environment, Heritage and Local Government the way he will fund local government when there will be a requirement by 2010 for additional resources of €1 billion to €2 billion compared to 2004; if existing levels of service provision are to be maintained; and if he will make a statement on the matter. [36609/06]

Amharc ar fhreagra

Freagraí scríofa

The Review of Local Government Financing by Indecon Economic Consultants estimated, on the basis of different methods of projecting expenditure, that by 2010 local authority expenditure will increase by €1 billion to €2 billion in nominal terms over 2004 levels. Funding this expenditure would be met by a combination of the buoyancy in the existing funding system, some additional funding and the achievement of efficiencies over the period.

As regards the existing funding system, there is significant natural buoyancy in the current revenue sources of local authorities. For example, at local level, the valuation base is growing rapidly as a result of our continued economic growth; in 2006, this valuation base increased by some 10% over 2005. In addition revenue from motor taxation — which is paid directly into the Local Government Fund — continues to increase without any increases in the rates of this taxation; in 2006, motor tax revenues are running at 10% above 2005 levels.

I was in a position to announce record levels of General-Purpose Grants to local authorities from the Fund amounting to some €875m for 2006. Taking account of global valuations, this was an increase of some 8% on the 2005 allocation or2½ times the 1997 level. I will shortly be announcing the general-purpose grant allocations to local authorities for 2007 and I am confident that the levels of funding that will be made available will be adequate to meet ongoing local authority needs.

To supplement the existing income sources, a number of initiatives are being pursued. Measures to combat motor tax evasion are being continued and stepped up. I am also considering ways of bringing planning fees, which are fixed by Regulations, into line with the economic cost of dealing with planning applications.

Additional revenues will be complemented by a range of efficiency initiatives. In partnership with local authorities:

I am developing a standard costing system for the sector to deliver enhanced management information, particularly in relation to unit costs,

I intend to enhance arrangements for local audit committees in line with best practice, and

I will pursue the scope for greater sharing of services between authorities.

I will also continue to ensure that the Value for Money Unit in my Department undertakes in-depth analyses of local authority activities and identifies "best practice". The availability of good information is a key to good decision-making and I have published key financial data on my Department's website.

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